Service tax changes in budget 2015

Sumit Grover (Chartered Accountant ) (3652 Points)

28 February 2015  

Education Cess & SHEC subsumed & effective rate of tax enhanced from 12.36% to 14%


Full reverse charge in case of supply of manpower & security services;


Time limit for availment of CENVAT of inputs and input services enhanced from 6 months to 1 year;


CENVAT credit for partial reverse charge to be allowed without any linkage of payment of amount of service;


Exemption allowed on transportation facilities of a patient by an ambulance;


Definition of government introduced for the first time;


No CENVAT is allowed in case abatement is opted for transport of goods by rail


Abatement for GTA(Goods transport services) by road reduced from 75% to 70%( resulting in effective tax rate from 3.09% to 3.708%)


Reimbursements of expenditures made specifically taxable, in order to avoid undue dispute/ litigations


Levy on the service provided by way of access to amusement facility such as rides, bowling alleys, amusement arcades, water parks, theme parks, etc.


Levy on service by way of carrying out any processes as job work for production or manufacture of alcoholic liquor for human consumption.


All services provided by govt. to business entity is proposed to make taxable.


Service tax exemption on mutual fund distributors withdrawn (simultaneously, it has fallen under full reverse charge ).


Telephone services by Departmentally run public telephone shall be brought in the ambit of service tax


Transport of goods for export by road from the factory to a land customs station (LCS) is being exempted.

Exemption for services received from export commission agents for export withdrawn
Digital signed invoices are allowed to be issued